Central Bank & Trust Co.

Central Bank of Jefferson County

Central Insurance Services

Central Investment Center, Inc.

2014

SECOND QUARTER

REPORT

CONNECTING WITH

OUR

COMMUNITIES.

MISSION STATEMENTThe mission of Central Bancshares is to become

Kentucky’s leading, high-performing, community

banking company by empowering our staff to deliver

consistently superior service and value to our customers,

shareholders and communities. We will be successful

because Central Bankers are our greatest resource and

our most sustainable advantage.

The Children’s Charity Fund of the Bluegrass is a local nonprofit organization we have partnered with for many years. Now in its 34th year, the Children’s Charity Golf Classic draws celebrities from all over the country to raise money for children in need in Central Kentucky. The charity has raised more that $8 million, with nearly 100% of that amount going directly to benefit children in need.

For additional copies or

INFORMATIONStephen C. KellyCENTRAL BANK300 West Vine StreetLexington, KY 40507(859) 253-6201skelly@centralbank.com

HELPING TO KEEP OUR COMMUNITIES STRONG.

CHILDREN’S CHARITY

CONTENTS Financial Highlights 1

Consolidated Balance Sheets 2

Consolidated Statements of Income 3

Boards of Directors 4

Officers 6

1

FINANCIAL HIGHLIGHTS

For six months ended June 30

RESULTS OF OPERATIONS: Net income Net income per share Cash dividends per share Book value per share at quarter end

AT JUNE 30: Assets Earning assets Net loans Deposits Shareholders’ equity

PERFORMANCE RATIOS: Return on average assets Return on average shareholders’ equity Average shareholders’ equity to average assets Net charge-offs to average loans Allowance for loan losses as a percentage of quarter end loans Net interest margin (tax equivalent)

CONTENTS Financial Highlights 1

Consolidated Balance Sheets 2

Consolidated Statements of Income 3

Boards of Directors 4

Officers 6

2014

$ 7,213,50620.73

0.00575.56

$ 2,082,402,1581,922,488,8531,617,240,7541,758,233,639

200,250,190

0.70%7.38%

8.87%0.15%

1.48%3.86%

*All periods prior to 2013 include the balances and results of Salt Lick Deposit Bank which was sold effective January 1, 2013.

2011

$ 5,778,37516.61

0.00466.11

$ 2,108,346,5001,929,807,0151,681,483,2831,824,806,829

162,169,002

0.55%7.29%

6.78%0.29%

1.45%4.08%

2010

$ 3,390,5969.750.00

443.68

$ 2,120,360,6111,935,439,2831,751,086,9861,788,472,396

154,365,749

0.33%4.45%

6.62%0.40%

1.19%3.98%

2012

$ 6,236,46217.92

0.00498.53

$ 2,130,888,1771,952,972,6501,634,177,9221,838,962,932

173,450,399

0.59%7.33%

7.38%0.22%

1.85%3.86%

2013

$ 6,170,29917.73

0.00535.26

$ 2,101,380,2431,945,033,3101,561,373,8741,775,738,596

186,228,698

0.59%6.75%

8.11%0.32%

1.64%3.60%

(

2

CONSOLIDATED BALANCE SHEETS

ASSETS Cash and due from banksFederal funds sold Total cash and cash equivalentsSecurities Loans, net of unearned incomeAllowance for loan losses Loans, netPremises and equipment, netFederal Home Loan Bank stockIntangible assetsPrepaid expenses and other assets Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITYDeposits: Non-interest bearing Interest bearing Total deposits Customer sweep accountsFederal funds purchasedFederal Home Loan Bank advancesLong term debt payableOther liabilities Total liabilities

SHAREHOLDERS’ EQUITYCommon stock, par value, $10 a share; 350,000 shares authorized, 347,922 shares outstandingAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss) Total shareholders’ equity Total liabilities and shareholders’ equity

June 302014

June 302013

$ 55,708,55063,400,000

119,108,550235,016,911

1,641,515,05124,274,297

1,617,240,75437,764,127

6,751,10014,795,16451,725,552

$ 2,082,402,158

$ 497,800,5451,260,433,0941,758,233,639

81,584,262500,000

2,804,05724,400,00014,630,010

1,882,151,968

3,479,2206,890,468

192,764,466(2,883,964

200,250,190$ 2,082,402,158

$ 43,120,883126,200,000169,320,883250,328,448

1,587,327,72125,953,847

1,561,373,87437,042,3377,050,900

15,089,07161,174,730

$ 2,101,380,243

$ 416,896,5831,358,842,0131,775,738,596

86,126,7690

2,833,58037,600,00012,852,600

1,915,151,545

3,479,2206,890,468

179,570,592(3,711,582

186,228,698$ 2,101,380,243

() )

))

3

For six months ended

CONSOLIDATED STATEMENTS OF INCOME

INTEREST INCOME Interest and fees on loans Interest on securities Interest on short term investments

INTEREST EXPENSE Interest on deposits Interest on borrowed funds

Net interest incomeProvision for loan lossesNet interest income after provision for loan losses

OTHER INCOME Service charges on deposit accounts Service charges on loans Wealth management income Other income

OTHER EXPENSES Salaries Benefits Occupancy Other non-interest expenses

Income before provision for income taxesProvision for income taxesNet income

Basic earnings per share

June 302014

June 302013

$ 38,632,289 1,466,506

64,54140,163,336

2,910,3931,057,0383,967,431

36,195,9052,814,523

33,381,382

4,314,5763,958,1766,315,1401,336,768

15,924,660

16,131,5373,702,2088,495,688

13,083,56341,412,996

7,893,046679,540

$ 7,213,506

$ 20.73

$ 39,187,694 1,046,163

207,31240,441,169

4,791,0471,414,7036,205,750

34,235,4194,251,000

29,984,419

4,403,8865,786,6885,672,4182,104,761

17,967,753

16,168,1453,830,6858,384,190

12,662,66641,045,686

6,906,486736,187

$ 6,170,299

$ 17.73

BOARDS OF DIRECTORSCentral Bancshares, Inc. and Central Bank & Trust Co. Board of Directors

Luther Deaton, Jr. Chairman, President & CEO, Central Bancshares, Inc. and Central Bank & Trust Co.

Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLC Certified Public Accountants

Joan D. Kincaid Vice Chairman of the Board, Central Bancshares, Inc. and Central Bank & Trust Co.

Wayne M. MartinRetiredWKYT-TV

Nick Nicholson Retired, Keeneland Association, Inc.

G. Michael RitchiePresident & CEO Photo Science, Inc.

Paul E. Sullivan Partner, Frost Brown Todd, LLC

Central Bank, GeorgetownAdvisory Board of Directors

Dallas BlankenshipRetired SuperintendentScott County Board of Education

Mason “Butch” GlassCommunity Volunteer

William C. HaughCEO, Georgetown Community Hospital

George H. LusbyScott County Judge Executive

Kimberly E. MarshallPresident

Randy MasonOwner-Operator, McDonald’s

W. Thomas PratherChairman, Central Bank, Georgetown

Central Bank, LexingtonAdvisory Board of Directors

Dennis AndersonPresident, Anderson Communities

Sheila BayesOwner, Sheila Bayes Fine Jewelry

Bill BrewerTrustee, Poole Enterprises

Shea HopkinsExecutive Director & CEO, KET

Dave HouchinPresident, Intech Contracting

Tom JonesPresident, Taper Roller Bearings, Inc.

Dr. Michael KarpfExecutive Vice President for Health Affairs/UK HealthCare

Mike KerwinPresident, Mike Kerwin Homes

Craig KingPresident, R.J. Corman Company

William Lear, Jr.Managing Director, Stoll, Keenon, Ogden, PLLC

Pat MaddenPresident, Pro Sports Management

Bill OwenPresident, Lexington Convention Center

Ralph PawsatPresident, Wald, LLC

P.G. PeeplesPresident, Urban League of Lexington

Brent RiceAttorney, McBrayer, McGinnis, Leslie and Kirkland

Dr. Christine RiordanProvost, University of Kentucky

Dr. William RoodRood & Riddle Equine Hospital

Charlie ScrogginSenior Vice President HDR-Quest Engineers, Inc.

Lisa Ball SharpVice President, Ball Homes

Steve ShermanPresident, Sherman-Carter-Barnhart Architects

Linda SlagelPresident, Highbridge Spring Water

Nick StrongOwner, Old Colony Insurance Services

Mike TearneyGatton College Associate Dean Emeritus,University of Kentucky

Bill ThomasonPresident, Keeneland Association, Inc.

4

Chairman, President & CEOLuther Deaton, Jr.

Central Bank, Madison County Advisory Board of Directors

Dianna Ackerman Broker/Owner, ERA Professional Hometown Services

Frankie C. Blevins, Jr.Attorney, Blevins Law, LLC

Robert R. BlytheEKU ProfessorPastor, First Baptist Church

James R. CarrBuilder and Developer

Shannon Combs Partner, Combs, Parsons and Collins Funeral Home

Jeff FultzPresident

James Ernest HillardOwner, Middletown Industrial

Clark PergremOwner, Onyx Coal Holdings

Mike Rice Owner, Cars of Kentucky, Inc.

Rita H. SmartOwner, The Bennett House

Central Bank, NicholasvilleAdvisory Board of Directors

Sandra J. AdamsOwner, Zaxby’s

Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLC Certified Public Accountants

Joan D. KincaidVice Chairman of the Board, Central Bancshares, Inc.

Ben A. RainwaterTutt Construction

Paul E. Sullivan Partner, Frost Brown Todd, LLC

Benjamin G. TaylorTaylor Made Farm & Sales Agency, Inc.

Alan S. VanArsdallPresident

Central Bank, Northern Kentucky Advisory Board of Directors Chris CarleSenior Vice President, Chief Operating OfficerSt. Elizabeth Healthcare, Florence

Helen CarrollManager, Community RelationsToyota Motor Manufacturing

Joseph A. Creevy, M.D.Retired Urologist

Mark GoetzOwner, Edgewood Electric

Merwin Grayson, Jr.President

Kim PattonCOO, SFA/PDT Architects

Doug RidenourPresident, Federal Equipment

Gregory ShumateMember, Frost Brown Todd, LLC

Ray Will, M.D.Cardiothoracic Surgeon

John YeagerOwner, Ashley Development

Central Bank, WinchesterAdvisory Board of Directors

James AllenFormer Clark County Judge-Executive

Gerald F. (Kelly) Healy IIIDirector of Operations McDonald’s

Nancy LawwillRetired Vice President & Assistant Treasurer Central Bank, Winchester

Glenn LeveridgePresident

Rex McCrary, D.M.D.Dentist

Jeff MonohanAssistant Vice President The Allen Company

Ralph J. PalmerPresident, Palmer Engineering Co.

Patricia M. SmithPresident, MD Consulting, Inc.

Robert Strode Retired

Mary Jane WarnerManager of Power Delivery, East Kentucky Power Cooperative, Inc.

Central Bank of Jefferson County Board of Directors

Jonathan S. BlueChairman, Blue Equity, LLC

Ronald L. CarmicleChairman, Central Bank of Jefferson County, President & Owner, River City Development

Marcia CassadyDirector, Classical Studies Institute of Louisville

Luther Deaton, Jr. CEO, Central Bank of Jefferson County

Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLC Certified Public Accountants

William P. MaloneRetired, Deming, Malone, Livesay & Ostroff

James Clay SmithPresident

William E. Summers, IVRetired, Deputy Mayor, Louisville Metro Government

Jude ThompsonOwner & CEO, Transform Business Solutions, LLC

5

OFFICERSCentral Bancshares, Inc.

Luther Deaton, Jr. Chairman, President & CEO

Joan D. Kincaid Vice Chairman

Anne B. Carter Vice President

Ranee LelandVice President &Corporate Secretary

C. Gregory StacyTreasurer

Central Bank, Lexington

ADMINISTRATION

Luther Deaton, Jr. Chairman, President & CEO

Ranee LelandVice President &Corporate Secretary

Auditing

Craig L. Daniels, CPA Senior Vice President

Lisa S. Grant, CRCMVice President & Compliance Officer

Donna J. Craven, CRCMVice President

Danny C. NolandVice President

COMMERCIAL BANKING

Gregory A. Bibb Executive Vice President

Credit Administration

Jason A. SmithVice President

Samuel CollinsSenior Credit Analyst

Jarred W. PaullCredit Analyst

Loan Review

Marie A. YoungVice President

David ChrismanSenior Vice President

D. Keith PrestonVice President

Leigh M. CarrAssistant Vice President

LeeAnn LayneAssistant Vice President

Michael WilliamsAssistant Vice President

Loan Services

Laura L. SchweitzerSenior Vice President

Timothy R. AustinAssistant Vice President

Loan Processing

Donna M. TurnerVice President

Special Assets Ellen Sharp Vice President

Steve HallVice President

Julie SzymanskiAssistant Vice President

Becky MullinsSpecial Assets Officer

Commercial Lending

Mark KaufmannSenior Vice President

Mark R. Fox Vice President

David RossVice President

Jake SchirmerVice President

Stephen J. MalloryAssistant Vice President

Shane AndersonCommercial Lending Officer

Consumer Lending

Jerry F. Smalley Vice President

Mortgage Lending Paul R. ThornsberrySenior Vice President

Megan BarlowVice President

Paul B. DrakeVice President

Jordan OwensAssistant Vice President

Small Business

Ernest W. DolihiteSenior Vice President

Richard D. Hartley Vice President

Terri A. Jones Vice President

Alicia F. SmithAssistant Vice President

Central Bank Mortgage

Ed WorkmanSenior Vice President

Susan BradleyVice President

Tom BreathittVice President

Brad FieldsVice President

Rebecca HaddixVice President

Catherine HimesVice President

Lorraine KinleyVice President

Brian W. West Vice President

Lisa Hart Assistant Vice President

HUMAN RESOURCES

Rose Douglass Executive Vice President

Amy ManningVice President

Shelia Plymale Vice President

June CarpenterHuman Resources Officer

TECHNOLOGY SERVICES

Julia Bondra Executive Vice President

Anna ClaytonVice President

E. Sean ProfittVice President

Kevin J. LippertAssistant Vice President

Brian D. CatronApplication Development Officer

Chris SchumInformation Security Officer

Paul StewartTechnology Services Officer

RETAIL BANKING

David L. Moore Executive Vice President

Michael GartnerSenior Vice President

Chris McGaugheyCRA Community Development Officer

Banking Centers

Karen Burton Assistant Vice President

Lana AlexanderRetail Banking Officer

Ugochi E. AlinnorRetail Banking Officer

Jeffrey BentonRetail Banking Officer

Gina EnsmingerRetail Banking Officer

6

Angela M. FrieszRetail Banking Officer

Barbara JohnsonRetail Banking Officer

Pamela LancasterRetail Banking Officer

Ashley NorvellRetail Banking Officer

Laura M. OwensRetail Banking Officer

Philip RochesterRetail Banking Officer

Alexandra E. TerryRetail Banking Officer

Client Services

Cathy K. Combs Senior Vice President

Diane Williams Client Services Officer

FINANCIAL PLANNING AND CONTROL

Edward BarnesExecutive Vice President & Chief Financial Officer

Robin OliverSenior Vice President

Shawn PresnellVice President

Lisa A. WilliamsonFinancial Planning Officer

ENTERPRISE RISKMANAGEMENT

C. Gregory StacyExecutive Vice President

Beth LakesVice President

Funds Management

James R. NallAssistant Vice President

MARKETING Stephen C. Kelly Executive Vice President

Lesley KellerMarketing Officer

Correspondent Banking

Doug Flynn Correspondent Banking Officer

OPERATIONS AND SUPPORT

Operations Anne B. Carter Executive Vice President

Karen G. Crawley Senior Vice President

Robin Michul Senior Vice President

Harvey SwordVice President

Internet Banking

Brenda P. Oaks Assistant Vice President

Card Services

Beverly Smalley Assistant Vice President

Corporate Services

Karen RowlandSenior Vice President &Corporate Treasury Manager

Maggie AbneyVice President

Tracy ReidVice President

Lisa K. Vickers Vice President

Chris CampbellAssistant Vice President

Deposit Services

Alisa DurhamVice President

Bank Security Jeff D. Jacob Senior Vice President & Security, BSA & AML Officer

Angela D. CampbellOperations Officer

WEALTH MANAGEMENT

Trust

Barry HickeySenior Vice President &Trust Manager

Business Development

Charles N. Rush, Jr.Vice President

Employee Benefits Vicky L. Foster Vice President

Sheila C. Parks Vice President

Operations Gayle DockeryAssistant Vice President

Personal Trust Kathryn Wilson GibsonSenior Vice President

Eloise G. Penn Vice President

Carolyn BishopTrust Officer

Anna HovekampTrust Officer

Investment Management

Timothy D. FyffeSenior Vice President &Senior Portfolio Manager

Thomas CorrVice President & Senior Portfolio Manager

Private Banking

Gregory M. ShewmakerSenior Vice President &Private Banking Manager

Rita L. BuggVice President

Leslie FanninVice President

Alicia JordanVice President

Christopher ThomasonVice President

Matthew FrankPrivate Banking Officer

Central Insurance Services

Ross BarnettePresident

Tom FrancisVice President

Rob WesselVice President

Justin WhippleVice President

Steven P. WrightVice President

Don YadenVice President

Beverly HicksCommercial Insurance Officer

Central Investment Center, Inc.

Jeff GinnanExecutive Vice President & Senior Financial Advisor

Jeff Fields, CRPS®

Vice President & Financial Advisor

Tony BrownFinancial Advisor

Jim DeMossFinancial Advisor

Deborah FisherFinancial Advisor

Jacobus M. Ockers Financial Advisor

Thomas E. Roberts, CFP®

Financial Advisor

7

OFFICERS

Central Bank, Georgetown

Kimberly E. MarshallPresident

Jennifer J. RobertsVice President

Patricia Voigt Vice President

Jennifer BaldwinAssistant Vice President

Mortgage Lending Ashley WeirAssistant Vice President

Central Bank, Madison County

Jeff FultzPresident

Cameron AbneySenior Vice President &Senior Market Lender

Scott JohnsonVice President

Ken RileyVice President

Mortgage Lending Donna HaneyVice President

Central Bank, Nicholasville

Alan S. VanArsdallPresident

Tom PorterExecutive Vice President & Senior Market Lender

Cathy LoweVice President

Jill SloneAssistant Vice President

Brandy OsborneCommercial Lending Officer

Mortgage Lending

Marcus P. HanksVice President

Monna Treadway Assistant Vice President

Central Bank, Northern Kentucky

Merwin Grayson, Jr.President

Matthew E. EilersVice President & Senior Market Lender

Karen J. HomanVice President

Mortgage Lending

Dennis BarnesAssistant Vice President

Retail Banking

Joseph NienaberVice President &Retail Development Officer

Troy FeddersVice President &Retail Banking Officer

Private Banking

John FinleySenior Vice President

Karen HartigVice President

Larry LuebbersVice President

Central Bank, Winchester

Glenn LeveridgePresident

Tim M. DuncanSenior Vice President

Lisa T. EarlywineVice President

Tammy M. CarrollAssistant Vice President & Retail Development Officer

Melissa ShimfesselRetail Banking Officer

Mortgage LendingLee ColemanAssistant Vice President

Amy TurnerAssistant Vice President

Central Bank,Jefferson County

James Clay SmithPresident

Jeff D. Jacob Senior Vice President &Security, BSA & AML Officer

Lisa S. Grant, CRCMVice President &Compliance Officer

William E. Summers, VSenior Vice President &Business Development Officer

Commercial Banking

Amy SullivanSenior Vice President

Mortgage Lending

Jeanie GammonAssistant Vice President

Retail Banking

David BondVice President & Retail Development Officer

Elaine FawbushAssistant Vice President

Casey SteitzRetail Banking Officer

Private Banking

Robert SliderSenior Vice President

Mary LittrellVice President

Wealth Management

Bill KaiserVice President

OFFICERS

8

Central Bank & Trust Co. and Central Bank of Jefferson County are subsidiaries of Central Bancshares, Inc.

centralbank.com(859) 253-6222(800) 637-6884

Member FDIC